On Wednesday (May 1), Nasdaq will start sending real-time XRP “index level information” on its Global Index Data Service (GIDS).
According to Nasdaq, the new index, which is called XRP Liquid Index (XRPLX), is “designed to provide a real-time spot or reference rate for the price of 1 XRP, quoted in USD, and based on the most liquid ends of their markets.”
XRPLX was developed by New Zealand-headquartered blockchain-focused data and research company Brave New Coin (BNC), and according to BNC’s blog post, it “will allow users to track the price of the XRP token… with far greater transparency than before.”
BNC says that it created the XRPLX ” to meet the marketplace requirement for a single, reliable and fair USD price for XRP — based on live real-world trading activity,” and that this index is “designed to report a market price at which liquidity could enter or exit an XRP position.” Other facts that BNC wants you to know about are:
- “The XRPLX captures a comprehensive, global sample of liquidity on the highest volume and quality exchanges”
- “Ideal for settlements and accurate spot pricing, the XRPLX API includes 30 second Intraday pricing, End-of-Day OHLCV and Time & Volume-Weighted-Averages.”
- “The XRPLX sources data from only the most liquid exchanges by volume and order-book depth. Given that exchanges are third-party organizations operating in a volatile and competitive marketplace, BNC reviews its constituent mix and index methodology every quarter to ensure the quality of its indices. Current constituent exchanges for the XRPLX include Bitfinex, Bitstamp, Poloniex and Kraken with Coinbase to be added in the next review.”
- “The ‘LX’ family of BNC indices has had its methodology independently audited against key IOSCO (International Organisation of Securities Commissions) principles…”
- “BNC’s Liquid Index (LX) indices are accurate and transparent. Drawing on qualitative and quantitative data sources, and factoring in the stability and quality of constituency, as well as volume, book depth, tick size and other factors from qualified market participants, the indices calculate a fair global value for the price of Bitcoin, Ethereum and now XRP, expressed in USD, every 30 seconds.”
Nasdaq, which “first partnered with Brave New Coin in February when it added BNC’s Bitcoin and Ethereum Liquidity Indexes (BLX and ELX)”, says that “data recipients will receive real-time index information from the proprietary GIDS data feed” every 5 minutes, but this might be incorrect since it sends out Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX) every 30 seconds.